A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- ShareA single unit of ownership in a company; owning shares means you own a piece of that business.
- Brokerage AccountAn account you open with an investment firm to buy and sell stocks, bonds, funds, and other investments.
- Dollar-Cost AveragingInvesting a fixed amount at regular intervals so you buy more shares when prices are low and fewer when high.
- StockA share of ownership in a company that you can buy and sell, giving you a small stake in its profits and growth.
- Robo-AdvisorAn online service that builds and manages a diversified portfolio for you automatically using software.
- DiversificationSpreading your money across many different investments so a drop in any single one does less damage.
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Plain-English education — not personalized legal, tax, or investment advice.